Normal consolidation is presently seen above the pivotal support of 1603.00 which represents the full correctional level of CD leg for the bearish harmonic AB=CD pattern as seen on the provided daily graph. In the interim, Stochastic is attempting to crossover negatively and that may assist the metal to reach the aforementioned level on its way to resume the downside rally to reach more extended technical objective for our accurate pattern which assisted us to propose abearish wave since the metal was valued at 1703.00. On the upside, areas of 1640.00 should hold to protect our negative scenario.
The trading range for today is among the key support at 1533.00 and key resistance now at 1653.00.
The general trend over the short term basis is to the upsidetargeting 1945.00 per ounce as far as areas of 1475.00 remain intact with weekly closing.
|Recommendation||Based on the charts and explanations above our opinion is, selling gold below 1603.00 targeting 1540.00 and stop loss above 1645.00 might be appropriate.|